Thai SEC to tighten up rules for crypto, focus on investor protection

Thailand joins the rising checklist of nations which can be in search of to revise their crypto regulation within the aftermath of the FTX collapse. And, as most of those international locations do, it intends to tighten the rules for the business and concentrate on investor safety. 

Based on the report from the Bangkok Put up, revealed on Dec. 13, the Thai Securities and Change Fee (SEC) is making ready extra stringent rules on digital property “to reflect the worldwide market.” To justify such a call, the SEC representatives reportedly nodded on the failures of FTX, Three Arrows Capital, the TerraUSD, Celsius Community and the native trade, Zipmex.

The regulators additionally raised their concern with the latest developments in crypto promoting, notably the usage of “finfluencers” to ship the message, which may have misled the viewers into funding dangers. They deemed the digital asset business to be “susceptible” and in want of oversight.

The SEC highlighted investor safety, management over crypto promoting, prevention of conflicts of curiosity and cybersecurity as main areas to focus its efforts on. It has arrange a working committee, mixed with each officers and personal stakeholders, to evaluate and put together the related amendments to current rules.

Associated: Crypto trade Bitkub focused by Thai SEC with wash buying and selling claims

Curiously, it’s not the primary time the Thai SEC acts on crypto promoting requirements. It has already obliged the market gamers to have clear funding warnings to shoppers again in September.

The identical month the SEC opened a public listening to on its initiative to ban crypto platforms from offering or supporting digital asset depository companies. The attainable ban of any staking and lending companies is meant to guard merchants and most of the people.

In Thailand, the wave of crypto companies’ bankruptcies stroke one of many largest native platforms, Zipmex. In July, the corporate suspended withdrawals, citing a “mixture of circumstances past [its] management.” The SEC accused Zipmex and its co-founder Akalarp Yimwilai of non-compliance with native legal guidelines and referred the matter to the police.